Three-minute pitch #5

Two days ago, a liquid (~$4m USD ADTV) UK-listed company announced the simultaneous sale of two of its divisions after undergoing a strategic review/alts process. Luckily for us, the company will keep one business in the public markets after paying out >70% of the market cap in cash. Best of all, the current price allows us to buy the remainco for less than half of what comparables usually trade at.

While this is an asset that I think is worth owning, it’s more likely that it will attract interest from a strategic or a PE firm. Given the downside protection from the dividend and solid upside, I think the risk/reward is attractive.